The GBP/CAD exchange rate made a pullback from the upper boundary of a junior descending channel pattern at 1.7700 on May 6. The pair were closely guided down by the 50-hour simple moving average.
The currency pair hit a psychological support level at 1.6900 on May 22. The rate made a brief retracement north after reaching the support line as mentioned above. However, the 50-hour SMA provided resistance for the pair at 1.7097.
By and large, if the resistance level formed by the 50-hour SMA holds, the currency exchange rate will continue its southern movement during the following trading sessions.
